Finding 504686 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-11-05
Audit: 327282
Organization: Lake Land College (IL)
Auditor: Mh CPA PLLC

AI Summary

  • Core Issue: The College failed to submit required FFATA special reports for Fiscal Year 2024.
  • Impacted Requirements: Reporting is mandatory for subawards over $30,000, but the College is exempt from executive compensation reporting.
  • Recommended Follow-Up: Management should establish a procedure to ensure timely completion and filing of FFATA reports moving forward.

Finding Text

Criteria Based on the requirements of Title 2 CFR Part 170, Subpart A, reporting of first tier subawards and total compensation of subrecipient executives is required for each action that equals or exceeds $30,000. In addition, reporting of total compensation of recipient executives is required. However, none of the requirements regarding total compensation of executives apply unless in the entity's preceding fiscal year, it received a) 80 percent or more of its annual gross revenue in Federal procurement contracts and Federal financial assistance awards subject to the Transparency Act; and b) $25,000,000 or more in annual gross revenue from Federal procurement contractors and Federal financial assistance awards subject to the Transparency Act. Therefore, the College is exempt from the total compensation of executives reporting. However, the College is required to report on subcontracts for each action that equals or exceeds $30,000. Condition The College did not submit the required FFATA special reports in Fiscal Year 2024. Cause of Condition Management was unaware of this requirement and did not have a procedure in place to submit the required FFATA special reports. Effect of Condition Future funding could be limited or suspended due to noncompliance with the FFATA special reporting requirements of Title 2 CFR Part 170, Subpart A. Questioned Costs No questioned costs over $25,000. Context FFATA special reports were required to be submitted during Fiscal Year 2024. Management did not submit the required FFATA special reports. Repeat Finding This finding does not repeat a previous finding. Auditor's Recommendation Management should implement a procedure to timely complete and file the FFATA reporting required by Title 2 CFR Part 170, Subpart A. View of Responsible Official Management was unaware of this requirement and has taken appropriate action to ensure that the issue has been resolved. Management has filed FFATA reports for all active Fiscal Year 2025 subrecipients.

Categories

Subrecipient Monitoring Procurement, Suspension & Debarment Reporting

Other Findings in this Audit

  • 504683 2024-001
    Material Weakness
  • 504684 2024-001
    Material Weakness
  • 504685 2024-001
    Material Weakness
  • 504687 2024-001
    Material Weakness
  • 504688 2024-001
    Material Weakness
  • 504689 2024-001
    Material Weakness
  • 1081125 2024-001
    Material Weakness
  • 1081126 2024-001
    Material Weakness
  • 1081127 2024-001
    Material Weakness
  • 1081128 2024-001
    Material Weakness
  • 1081129 2024-001
    Material Weakness
  • 1081130 2024-001
    Material Weakness
  • 1081131 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $5.48M
17.258 Wioa Adult Program $996,891
84.268 Federal Direct Student Loans $975,184
17.259 Wioa Youth Activities $583,376
93.575 Child Care and Development Block Grant $423,646
84.044 Trio Talent Search $363,562
17.278 Wioa Dislocated Worker Formula Grants $299,029
84.042 Trio Student Support Services $288,187
84.002 Adult Education - Basic Grants to States $239,930
84.007 Federal Supplemental Educational Opportunity Grants $81,400
64.028 Post-9/11 Veterans Educational Assistance $73,833
17.285 Registered Apprenticeship $63,909
84.033 Federal Work-Study Program $32,884
84.048 Career and Technical Education -- Basic Grants to States $24,975
21.027 Coronavirus State and Local Fiscal Recovery Funds $14,355
17.245 Trade Adjustment Assistance $9,146
47.076 Stem Education (formerly Education and Human Resources) $3,755